GMR-Megawide bid close to bag Philippines airport project

12 December 2013 (Last Updated December 12th, 2013 18:30)

A consortium of GMR Infrastructure and contractor Megawide Construction has reportedly submitted the best bid for a project to operate and improve Mactan-Cebu International Airport in Philippines.

A consortium of GMR Infrastructure and contractor Megawide Construction has reportedly submitted the best bid for a project to operate and improve Mactan-Cebu International Airport in Philippines.

The consortium offered a PHP14.4bn ($325.45m) premium, which beat offers made by six other groups for the 25-year concession to operate the airport and establish one of its terminals.

Its offer was PHP400m ($9.04m) higher than the second-highest bid, which was from a consortium led by banking firm Filinvest Development (FDC.PS) and Changi Airports Saudi.

"Megawide gave one of the higher passenger traffic forecasts."

The country's transportation department will evaluate the bids and declare the winner in early January 2014.

The GMR-Megawide consortium plans to raise 70% of the bid amount through capital market in the first quarter of 2014, and the rest through a subsidiary.

In an interview with ANC, Cosette Canilao, executive director of the Public-Private Partnership Center, said: "In the technical proposals, the passenger traffic forecasts were reflected and Megawide gave one of the higher passenger traffic forecasts."

"GMR is actually an experienced airport operator. It is listed in India and is the operator of the Delhi, Turkey and Maldives airport. They've never lost in any PPP bids for airports."

GMR is expected to hold 40% stake in the joint venture.

Mactan-Cebu International Airport, which is the country's second-biggest airport, has a capacity of 4.5 million passengers per year; it handled about 6.2 million passengers in 2011.